UPDATE: Goldman Sachs Initiates Global Brass and Copper with Buy on Good Upside Potential

In a report published Tuesday, Goldman Sachs analyst Sal Tharani initiated coverage on

with a Buy rating and $20.00 price target. In the report, Goldman Sachs noted, “We launch coverage of Global Brass and Copper (BRSS) with a Buy rating and a 6-month P/E- and EV/EBITDA-based price target of $20, implying about 45% upside from current levels. BRSS has significant leverage to the US housing and construction market, with little metal price risk and further upside from automotive and industrial end-market exposure. We like BRSS for its end-market exposure, leading market position in each of its operating segments, and its metal pass-through and hedging structure that effectively removes the impact of copper and zinc price volatility. New lead-free water piping regulations could provide an additional growth opportunity.” Global Brass and Copper Holdings closed on Monday at $13.84.